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IRAC structure

1. Issue: Correctly identify a relevant tort defense applicable to the case.
2. Rule: Correctly define the rule governing the identified tort defense.
3. Application of Facts: Correctly identify and apply key facts and assumptions to the rule.
4. Conclusion: Make appropriate conclusions as to outcome of the defense based on the issue analysis. Outcome of the lawsuit. Make sure you address:

a. Is there a contract?

b. Assume there is a contract. What are the parties' respective duties?

c. Was there a breach of contract? Describe how you reached this conclusion.

d. What are the damages? Describe how you calculated them.

Bridge Over Troubled Negotiations

Craig Concrete Corp. ("Craig") manufactures and sells pre-cast concrete panels. These panels serve as the "floor" of bridgesthat is, the deck that people walk over or cars drive over.

Randall Rebar Corp. ("Randall") is a distributor of various building products, including rebar and pre-cast concrete panels, but does not actually manufacture any panelsor anything, for that matter.

On July 1, city of Townsville, W.Va., solicited bids to build a footbridge across a stream in the Townsville public park, with bids due July 31. Prior to the solicitation, the City's engineer approved the bridge designs, which will require 1,000 reinforced concrete deck panels 1 inch thick.

The solicitations were mailed to several contractors, including Craig and Randall. On July 25, Craig faxed a quote to Townsville for 1,000 deck panels 2 inches thick at $100 per panel. No other terms were included on the quote.

On July 31, Randall called Craig and asked if Craig would provide a quote for deck panels 1 inch thick for the bridge project. Randall tells Craig that Randall "is going to win the contract" for the bridge project, so they are soliciting their own bids for materials. Craig emails Randall a copy of the quote faxed to Townsville.

At the time of the conversation with Craig, Randall had not technically been awarded the general contract with Townsville. However, the next day, Randall was formally awarded the contract with Townsville. Craig's quote was the basis for Randall's estimated material costs.

Randall calls Craig again to discuss anticipated delivery date of the panels. Craig explains that their usual contracting method is to receive plans, have an in-house engineer review and approve the plans or make adjustments, return the modified plans to the site owner for approval, and then issue a final quote. Craig does not consider contracts to be final until a purchase order is issued by the buyer.

Randall insists that the quote sent by Craig is a binding agreement, which was relied upon by Randall in its own negotiations with Townsville, and that Craig must abide by it.

Craig responds that 1-inch-thick panels cannot be manufactured for the job, despite the drawing, because industry standards require such deck panels to be no less than 2 inches thickthinner panels are more likely to crack. Randall responds that Townsville has not adopted the industry standards as a local building code, plus the Townsville engineer approved the 1-inch-thick panels.

Randall arranges for a different manufacturer to produce the 1-inch-thick deck panels at an increased cost$150 per paneland sues Craig for breach of contract for the price difference.